https://www.taxtmi.com/caselaws?id=168671 Payments under a service agreement, although measured by reference to a percentage of profits, were deductible in computing trading profits because they were remuneration for services and not a distribution of profits. The agreement required the amount payable for services to be determined before divisible profits were finally ascertained, with a separate account used to calculate distributable profits. A profit-linked payment is not denied deduction where it is in substance part of the cost of earning the profits. The deduction was therefore allowable, and the company succeeded in claiming it against taxable profits. en-us Thu, 16 Dec 1937 00:00:00 +0530 Sat, 21 Mar 2015 10:15:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168671 Payments under a service agreement, although measured by reference to a percentage of profits, were deductible in computing trading profits because they were remuneration for services and not a distribution of profits. The agreement required the amount payable for services to be determined before divisible profits were finally ascertained, with a separate account used to calculate distributable profits. A profit-linked payment is not denied deduction where it is in substance part of the cost of earning the profits. The deduction was therefore allowable, and the company succeeded in claiming it against taxable profits. Case-Laws Income Tax Thu, 16 Dec 1937 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168671